Do some equity research reports have unreliable or inaccurate insights?
I sometimes read through various equity research and find the insights to vary by quite a bit. Something I see from BofA for example could have insights drastically different from what I see from some other broker, like Jeffries.
Could stuff from one place be less reliable / straight up inaccurate or how can you tell which is more accurate?
GAAP financial results should be accurate across the board though analysts could differ on what adjustments they make. Sometimes bond pricing/Relative value tables will differ depending on pricing source. But generally the numbers should be the same or similar.
In terms of insights or how analysts view results/forecast into the future, yes, they will differ. If everyone had the same insights/forecasts, how would firms differentiate? In that case, I might as well subscribe to one firm and call it a day. They have to differentiate (though a lot of the times they agree with minor differences) because differentiated insights (as well as mgmt access) are how they deliver value to subscribers. At least that is how I interpret it.
To decifer who is accurate/inaccurate you have to have your own view on the name. Eventually, the market will expose who is swimming with no shorts/who made the right call.
what
Gotta differentiate yourself when you’re a cost of goods sold (which essentially every sell side team). Banks cutting research teams left and right (@rich_toad [best social media info on ss ER] posted today apparently Berenberg axed ~50 research analysts in Europe today). I work at a small shop so it just my opinion but have to assume with all the cuts across the street as a senior analyst at a BB/Large EB if you’re not doing something to attract attention to your work or cover and have good relations with banking/capital markets clients / good corpaxe why do they need you?
could also differ in opinion because of said banking relationships, or could be an analyst at China International Capital told by the bank don’t publish bearish views on the Chinese government out of fear of their well-being lol
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